JP Morgan expects that the mainland may introduce measures to reduce home purchase costs, with a preference for RunDi CHINA RES MIXC, etc

JP Morgan published a research report stating that the statements regarding the real estate market made at the recent Central Economic Work Conference were similar to previous ones, but compared to the last few government meetings, this time there was more emphasis on the real estate market, indicating that stabilizing the real estate industry remains one of the key tasks in mainland China.

JP Morgan noted that no specific measures were mentioned at this meeting, but they believe that the next policy measures may aim to reduce home buying costs (such as mortgage subsidies). Even so, if policymakers do not demonstrate a stronger determination to stabilize housing prices, they believe that potential measures may only have a short-term impact on stabilizing transaction volume/price.

JP Morgan also pointed out that historical data shows that after government meetings, if relevant policies are not unexpected, the real estate sector tends to show an average decline of 1% and 3% within one day and five days, respectively. Their preferred stocks are China Resources Land (01109.HK), CHINA RES MIXC (01209.HK), and China Jinmao (00817.HK); however, they remain cautious about Vanke (02202.HK).

For JP Morgan's ratings and target prices on domestic real estate stocks, please refer to another table